Terra
LUNA
Evaluation Score
Overall rating on a scale of 0-10
Crypto Token Health Score Explained
Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.
AI Analysis
Comprehensive evaluation of the token
Overall Analysis
Terra’s development activity remains strong, backed by a robust contributor base, disciplined CI/testing, and transparent governance processes. The tokenomics mechanism innovatively balances inflation and deflation via algorithmic mint/burn, creating intrinsic demand tied to stablecoin usage.
However, the project bears significant risks: the UST/LUNA algorithmic peg model previously failed catastrophically, security audits of critical components were limited pre-launch, and governance centralization raises concerns. Market competition in stablecoins is intense, and regulatory scrutiny is increasing. The community is engaged but still bears scars from the 2022 collapse.
Overall, LUNA offers moderate upside potential but carries elevated systemic and operational risks, making it suitable only for speculative positions.
Detailed Analysis by Category
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Terra (LUNA)
Terra (LUNA)
Terra is a blockchain protocol focused on algorithmic stablecoins, powered by its native token, LUNA. Designed for global payments and decentralized finance (DeFi), Terra issues stablecoins pegged to major fiat currencies through an on-chain stability mechanism.
Key Features
- Native Token: LUNA serves as collateral for stablecoins and grants governance rights.
- Stability Mechanism: Automated minting and burning of LUNA maintains stablecoin pegs.
- Decentralized Governance: Token holders vote on protocol upgrades and parameter changes.
- High Throughput: Scalable proof-of-stake network built with the Cosmos SDK.
Use Cases
- Algorithmic stablecoins (e.g., UST)
- Cross-border payments and remittances
- DeFi applications: lending, borrowing, liquidity provision
Token Details
- Name: Terra
- Symbol: LUNA
- Blockchain: Terra (Cosmos SDK)
Similar Rated Tokens
More for DeFi Investors
- Yield Farming Analysis: Discover the best tools and strategies for maximizing your returns from yield farming in DeFi.
- AI vs Fundamentals: See how Token Vitals combines AI crypto price prediction with fundamental analysis for a balanced investment perspective.
- Risk Scores Explained: Learn how our crypto risk scores differ from traditional credit scores and what that means for your portfolio.
- On-Chain Metrics: Understand which on-chain metrics matter most when investing in tokens and how to use them effectively.
- US Investor Analytics: Access crypto analytics designed for US investors, including features to help with tax tracking and compliance.
- Finding Value: Explore our data-driven lists to uncover top undervalued DeFi tokens for 2025 and beyond.